Additional Coverage:
- FTC’s rule banning fake online reviews goes into effect (newsbreak.com)
FTC Cracks Down on Fake Online Reviews
The Federal Trade Commission (FTC) has implemented a new rule outlawing the purchase and sale of fabricated online reviews. The rule, which took effect on Monday, authorizes the agency to pursue legal action against anyone who deliberately violates it.
“Fake reviews harm consumers, businesses, and the integrity of the marketplace,” said FTC Chair Lina Khan. “This rule protects Americans from being misled, warns businesses that cheat, and promotes fair and competitive markets.”
The rule prohibits reviews attributed to non-existent individuals or created by artificial intelligence. It also outlaws reviews from people who have no experience with the company or product and those that misrepresent the reviewer’s experience.
Businesses are prohibited from creating or selling fake reviews. Those who knowingly purchase or obtain fake reviews from insiders will face penalties. The rule also bans businesses from using threats or intimidation to manipulate reviews.
Consumers can report suspected violations to the FTC at https://reportfraud.ftc.gov.
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- FTC’s rule banning fake online reviews goes into effect (newsbreak.com)